As the White House continues its efforts to defuse tensions with Beijing and avert a destabilizing crisis, a senior US Treasury official is departing for Hong Kong.
Assistant US Treasury Secretary Brent Neiman is traveling to Hong Kong on Wednesday as part of a drive to “deepen ties between the world’s two largest economies,” a Treasury source told CNN. He is the latest US official to visit the area.
Neiman, the highest-ranking Treasury representative to visit Hong Kong since 2019, will meet with government representatives, business economists, and executives from the legal and financial sectors. He also plans to meet with students and representatives from US businesses that are members of the American Chamber of Commerce in Hong Kong.
Neiman will speak about “the financial underpinnings of the US-China relationship and the importance of communicating on financial and regulatory matters as well as macroeconomic and financial developments in Hong Kong and China,” the US official said.
It is noteworthy that the Treasury official also intends to discuss contentious matters, such as human rights, a touchy subject given Beijing’s history of violating human rights and its complex relationship with Hong Kong.
According to the Treasury source, Neiman “will stress the United States’ focus on securing and advancing our economic and national security interests, as well as those of our allies, and protecting human rights.”
The worldwide financial hub of China is the semi-autonomous territory of Hong Kong.
The visit takes place at a sensitive time. A recession in China is having a negative impact on the global economy. Beijing is striving to move past issues including high youth unemployment, muted export demand, and a troubled real estate market.
Because China contributes so much to global growth, this might be perilous for the world economy, according to Ilaria Mazzocco, senior fellow in Chinese business and economics at the Centre for Strategic & International Studies in Washington.
President Joe Biden’s order to fire down a Chinese spy balloon caused a low point in US-China relations early this year, which led to the iPhone ban and the advanced technology conflict. The most significant and intricate bilateral relationship on earth became even more convoluted as a result of the tragedy.
The administration has sent a flurry of officials to mainland China in recent months, including Secretary of State Antony Blinken, Climate Envoy John Kerry, Treasury Secretary Janet Yellen, and Commerce Secretary Gina Raimondo, in an effort to defuse tensions with Beijing, despite criticism from some Republicans.
“Avoiding Systemic Shocks”
Given that the threshold for success was fairly low, experts say the recent travels by Yellen and Raimondo marked accomplishments.
To prevent crises and unpredictability, this is more about opening lines of communication and fostering mutual understanding. Avoiding systemic shocks is the goal, according to Mazzocco. “Relations between the US and China have struck a low point this year. Though I wouldn’t characterize it as the bottom. One could always descend. Additionally, any deterioration in US-China relations carries an inherent risk of war.
In fact, Yellen stated at a news conference in Beijing in July that US officials’ discussions with Chinese officials are part of a “broader concerted effort to stabilize the relationship, reduce the risk of misunderstanding.”
